The 2010 gold price is forecast to reach USD1226 (historical peak) again in Q2 of 2010, and in the last quarter, gold is forecast to achieve a new all time high price between USD1300-1360.
Forecast: Q1: Price correction, Q2: Rally, Q3: Correction, Q4 Rally
How can you profit from trading spot gold?
1.) Spot gold trading is different from investing in physical gold, such as gold bars and gold coins. Investing in physical gold, you can only make profits when gold prices rise. While in spot gold trading you can profit when prices rise or fall.
2.) Keys to successful spot gold trading:
a.) Learn and understand what spot gold trading is all about: you can place long positions if you think gold price is rising, or short positions when you think price may fall.
b.) Spot gold trading involves margin trading, and offers a normal leverage of 70:1. And with most online trading platforms, each USD 1 rise in spot gold price, it gives you USD100 profits.
c.) Never use more than 1/3 of your account to trade. As you need plenty of margins to maintain your open positions. (Play safe)
d.) Conduct detailed research and analysis – technical and fundamentals. Technical (charting) analysis is a great way to predict gold price movements both short-term and long-term. Most analysis gives you indications of what the upper levels (resistance prices) and lower levels (support prices) are for the trading day. You can make profits from trading within the specified range.
Fundamental analysis is also important, as macro economic news, key economic indicators often affect the gold price trends.
e.) Read forecasts on gold prices. Many analysts give good predictions of how the overall trend will look like. So you can avoid buying when price is too high, and shorting when price is already at day low price. It is actually not difficult to work out the trading range, as the charting tools are very smart these days.
3.) 2010 – trading strategies:
Goldtrades.info’s 2010 forecasts:
Q1: Price enters a correction after 2009 Dec peak of USD1226. (Trading range: 1085 – 1140)
Q2: Seasonal rally: (Trading range: 1125 – 1176, 1180 – 1200)
Q3: Correction period: (Trading range: 1135 – 1180)
Q4: End of year rally: (Trading range: 1160-1200, 1200-1300)
You should study 2010 forecast on gold price before entering the markets.
4.) Day trading: you should aim to take USD5 – USD8 profits. For example in Q2: a rising trend is expected, you should place long positions at daily support levels and take profits when gold price reaches 1st resistance.
5.) Medium term trading: Q2: place long positions at key support prices such as 1125, 1130, 1135, and aim for a USD30 – USD50 profit.
6.) Always place cut loss positions: for example if you open a long position at 1st support level of the day, then always place a cut loss price within USD6 off the 1st support price.
7.) Take notes of daily pivots: which gives predictions of daily resistances and supports price levels, you can place your positions at or near these prices.
Successful traders generate profits from careful studies of daily analysis, pivot points, key resistance and support levels. They never enter the markets trying to catch the trend without reading daily and weekly analysis.
You can get detailed analysis from our Daily Gold Price Trends Analysis and 2010 forecasts.
Hilda Chan Senior Analyst hildachan@sbihk.com www.goldtrades.info
About the Author
Hilda Chan is an analyst and has over 15 years of investment markets experiences. Graduated from the University of Warwick, UK with an Economics degree. Goldtrades.Info – 24 hours gold price analysis and trades signals. We also provide real-time trading strategies and gold markets news. Investors can trade through our online platform. For more analysis on gold price, please visit: www.goldtrades.info
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